ASIC has acted to end the sale of Virtual Money ATM cards in Australia. The cards, which operate similarly to a debit card, enabled consumers to deposit money to a local Australian bank account, for later withdrawal or transfer to another Virtual Money cardholder, anywhere in the world.
Following concerns about the operation of Texas-based Virtual Money Inc in Australia, ASIC determined that the company was selling cards to retail consumers without an Australian financial services licence (AFSL) as required by the Corporations Act.
ASIC considers products like the Virtual Money ATM card to be non-cash payment facilities; a type of financial product. People who deal in such products with Australian consumers must hold an AFSL.